20 Years After JNR Privatization Vol. 2 West Japan Railway Company (JR West) Corporate Communications Department Introduction Using this as a springboard, we turned the sense of crisis after privatization into an advantage by developing a wide JR West was founded in April 1987 when Japanese range of measures to improve safety and service, and National Railways (JNR) was divided and privatized, so taking action to strengthen and enhance our business. April 2007 marked our 20th anniversary. The objective However, while implementing these measures, the Great of the privatization reforms was to revitalize the railway Hanshin-Awaji Earthquake struck the Kobe region in business—to achieve this, we quickly established an January 1995, causing huge damage to JR West. Although independent and responsible management system and it was a difficult challenge, our staff overcame the many addressed a wide range of issues in order to gain the problems we faced. trust of our customers. However, all this was undone Another important objective was genuine privatization when the Fukuchiyama Line disaster on 25 April 2005— and we were finally listed on the stock exchange on 8 costing 106 lives and injuring more than 500 others— October 1996. Amendments to the JR legislation in lost the trust of our customers and Japanese society in December 2001 formalized the full privatization; JRTT general. We would like to take this opportunity to JNR Settlement Headquarters finally sold all its remaining apologize sincerely again to the families of those who shares in March 2004 to make JR West fully privatized in were killed in the accident, those who were injured, and true terms too. As such, we had achieved a key goal. all the people who were caught up in the accident in any Although we have always recognized that safety has way. We are still doing all we can to help the accident priority in our business, the terrible accident on the victims and are reforming the company to create a Fukuchiyama Line killing 106 people and injuring over ‘Corporate Culture Placing Top Priority on Safety’ with 500 others destroyed the trust built between JR West and the objective of trying our utmost to regain our customers’ our customers and society as a whole. trust. This article highlights these efforts, and also uses the opportunity of our 20th anniversary to look back on Implementing Safety Enhancement Plan our past activities and describe our outlook for the future. Although we had always recognized safety as a management priority, the terrible accident on the JR West History Fukuchiyama Line made us re-examine every aspect of Progress over 20 years our organization. Immediately after the accident, we did our utmost to support the victims. We were deeply aware JR West inherited rail operations in the Kansai area from of the accident severity and determined to review our JNR. There was especially intense competition with large entire business to identify the issues we needed to address private railway companies in this region, and there were to prevent a recurrence of this tragedy. We wanted to no very profitable sections, such as the Tokyo metropolitan implement these measures quickly, so 31 May 2005 saw area or the Tokaido Shinkansen. At its establishment, JR publication of our Safety Enhancement Plan (Fig. 1) West was seen as having the weakest business of the three allowing us to start acting on creating a ‘Corporate Culture JR companies on Honshu and we expected difficulties Placing Top Priority on Safety.’ soon after the foundation. The plan comprised 40 items and is divided into three In facing this harsh business environment, we started by categories—Efforts to Reform Culture and Instill a Sense formulating our Corporate Philosophy, outlining the direction of Value, Specific Structural and Training-related Measures of JR West and and how to share these values with all staff. for Promoting Safety, and Specific Hardware and In addition, we established suggestion boxes so customers Equipment-related Measures for Promoting Safety. We could feedback their opinions on our service. This helped are determined to help our customers to feel safe and focus our management objective of always putting customers reassured as soon as possible, and are continuing to first and reflecting their opinions in our policies. spread the principles of this plan through the company. 31 Japan Railway & Transport Review 49 • March 2008 ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ Figure 1 Safety Enhancement Plan Issues and Problems Basic Attitudes Progress of Principal Measures 1. Culture and Sense of Value <Basic Philosophy> Efforts to Reform Culture and Instill Sense of Value (5 items in total) 2. Response to Reports on Establishment of ‘Corporate ‘Accident Origins’ Philosophy’, and ‘Safety Charter’ Establishment of Safety Consultative Committee 3. State of Education and Training Corporate Culture Placing Top Priority Specific Structural and Training-related Measures (22 items in total) 4. State of Information on Safety Communication and Sharing Revision of current state of education and training 5. Attitudes toward Previous Timetable revisions Measures to Prevent the Recurrence of Accidents Specific Hardware and Equipment- related Measures (13 items in total) 6. Safety Measures in Transport Revision of safety facilities and Systems Improve reliability of facilities Formulation of new Corporate Figure 2 New Corporate Philosophy and Safety Charter Philosophy and Safety Charter The terrible Fukuchiyama Line accident prompted us to Safety Charter undertake a comprehensive review of our Corporate Philosophy forming the basis of company policy and the We, ever mindful of the railway accident that occurred values shared by all staff. We drew up a new philosophy on April 25, 2005, conscious of our responsibility for after involving all staff in company-wide discussions, and protecting the truly precious lives of our customers, and also asking the opinions of outside experts. At the same based on the conviction that ensuring safety is our time, we emphasized to everyone that safety—the first item foremost mission, establish this Safety Charter. in the Corporate Philosophy—is the value with top priority. In line with this, we revised the Safety Charter code of 1. Safety is ensured primarily through understanding conduct outlining how every staff member must act to and complying with rules and regulations, a strict ensure safety. We are continuing to disseminate and apply execution of each individual’s duty, and the principles established in these two documents. improvements in technology and expertise, and built up through ceaseless efforts. Review of medium-term targets 2. The most important actions for ensuring safety are In October 2006, we reviewed our group’s Medium-Term to execute basic motions, to rigorously enforce Management Targets to make becoming a ‘Corporate safety checks, and to implement flawless Culture Placing Top Priority on Safety.’ the top priority. communication. We also planned how to spread and apply the new Corporate Philosophy and Safety Charter, and full implementation of the Safety Enhancement Plan. These 3. To ensure safety, we must make a concerted effort, irrespective of our organizational affiliation, rank or actions aimed to establish quick recovery of customer assignment. trust and sustained development of the corporate group. Furthermore, specific actions were taken on 6 themes identified as important management issues—Sincere 4. When uncertain about a decision, we must choose Response to Accident Victims, Promotion of Measures to the most assuredly safe action. Enhance Safety, Promotion of Reforms, Provision of Quality Services and Products Preferred by Customers, 5. Should an accident occur, our top priorities are to Enhancement and Preservation of Technology, and prevent concomitant accidents, and to aid Expertise and Promotion of Technological Development, passengers. and Performance of Corporate Social Responsibility (CSR). Japan Railway & Transport Review 49 • March 2008 32 ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○20 Years After JNR Privatization Vol. 2 Activities in Each Business Field revision greatly expanded the number of Nozomi services and increased the opportunity to ride them by introducing San’yo Shinkansen stops at stations in Himeji, Fukuyama, Tokuyama, and JR West’s operations area consists of two metropolitan Shin-Yamaguchi. Nozomi fares were also revised and areas and 16 prefectures in the Hokuriku, Kansai, non-reserved seats introduced. Chugoku and north Kyushu regions. We operate the Our J-West Card service was launched in Feb 2006, and San’yo Shinkansen, conventional intercity lines, and the July that year saw extension of the Express Reservation urban network in Kyoto, Osaka, and Kobe. About 4.9 service to the full length of the Tokaido and San’yo million people ride our trains daily (FY2005). shinkansen. Clearly, we have put a lot of effort into The March 1993 timetable revision marked the launch improving services for customers. of Nozomi on the San’yo Shinkansen to provide customers with the most convenient and comfortable Conventional lines services. A further timetable revision in March 1997 We have taken a proactive approach to improving introduced Series 500 Nozomi trains running at speeds customer convenience over the years. up to 300 km/h. Another timetable revision in March To meet the diversifying and more sophisticated demands 2000 introduced the Hikari Rail Star, which—in